MB-920 Describe Dynamics 365 Supply Chain Management Practice Test 7 — 15 Questions

Question 1

A company uses Dynamics 365 Supply Chain Management and wants to automate the replenishment of items based on historical demand and predefined minimum stock levels. Which feature should they configure?

Choose an answer to begin — your selection is scored in the full session.

Accepted Answer

Replenishment rules. Replenishment rules in Dynamics 365 Supply Chain Management are the feature designed to automate the replenishment of items by evaluating historical demand, current inventory, and predefined minimum stock levels (safety stock) to generate replenishment orders. This directly matches the requirement to automate replenishment based on demand history and minimum stock thresholds.

Answer

Safety stock journal

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Forecast scheduling

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Cycle counting

Question 2

A company uses Dynamics 365 Supply Chain Management and wants to automate the replenishment of items based on historical demand and predefined minimum stock levels. Which feature should they configure?

Choose an answer to begin — your selection is scored in the full session.

Accepted Answer

Warehouse zone groups. Warehouse zone groups (A) are used in Dynamics 365 Supply Chain Management to group similar items or locations for picking optimization, reducing travel time for pickers. Zone groups define logical groupings of warehouse zones, and picking routes can be optimized by grouping items in the same zone. This directly addresses the requirement to group similar items together to reduce travel time.

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Product filter codes

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Item coverage group

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Batch attributes

Question 3

A company uses Dynamics 365 Supply Chain Management and wants to automate the replenishment of items based on historical demand and predefined minimum stock levels. Which feature should they configure?

Choose an answer to begin — your selection is scored in the full session.

Accepted Answer

Quality orders with expiration date control. Quality orders with expiration date control allow the system to enforce shelf-life rules so that inventory past or near its expiration date is blocked from reservation and picking. By associating quality orders with item sampling and expiration handling, Supply Chain Management automatically prevents expired or near-expiry stock from being allocated to customer orders.

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Inventory status

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Location profiles

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Item model groups

Question 4

Which TWO features in Dynamics 365 Supply Chain Management can be used to improve warehouse picking efficiency?

Accepted Answer

Mobile device menu configuration for scanning. Mobile device menu configuration for scanning (A) is correct because it defines the warehouse mobile app menus and work-confirmation steps that guide workers through scan-based picking, reducing keystrokes and errors and directly speeding up pick execution. Cluster picking (E) is correct because it lets one worker pick items for multiple orders or work units in a single pass using a single mobile device, cutting travel time and boosting picks per hour. Cycle counting (B) is a periodic inventory-audit process that improves inventory accuracy but does not itself optimize picking throughput. Wave processing (C) groups work into waves to organize and release picking work, but it is a work-creation/prioritization mechanism rather than a picking-efficiency technique per se. Location profiles (D) control location behavior such as location types and capacity/sequencing rules, which support putaway and storage setup rather than directly improving picking efficiency.

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Cycle counting

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Wave processing

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Location profiles

Question 5

Which THREE of the following are valid master planning types in Dynamics 365 Supply Chain Management?

Accepted Answer

Supply planning. In Dynamics 365 Supply Chain Management, master planning supports three planning types: Supply planning (Option A), which plans supply orders to cover demand; Intercompany planning (Option B), which includes demand from intercompany orders so that related legal entities are planned together; and Distribution planning (Option E), which uses distribution orders to move inventory between warehouses or sites. These three are the selectable master planning types in the Master planning setup, so A, B, and E are correct. Option C (Demand planning) is not a master planning type in D365 SCM; demand forecasting is a separate feature that feeds master planning, and Demand planning is a separate app. Option D (Capacity planning) is likewise not a master planning type; capacity is handled through resource capacity settings and scheduling, not through master planning types.

Answer

Demand planning

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Capacity planning

Question 6

Which THREE of the following are capabilities of the Dynamics 365 Supply Chain Management Copilot (AI) features?

Accepted Answer

Analyze supplier performance and recommend alternatives. Option A is correct because Supply Chain Management Copilot can surface supplier performance insights and suggest alternative suppliers when risks or delays are detected, helping procurement teams act on AI-driven recommendations. Option C is correct because Copilot assists planners by analyzing production constraints and proposing optimized schedules that improve efficiency and reduce bottlenecks. Option E is correct because Copilot leverages AI to generate and refine demand forecasts, helping organizations anticipate demand more accurately. Option B is not correct because setting up financial dimensions for cost centers is a manual configuration task in Finance, not a Copilot AI capability. Option D is not correct because managing a warehouse robot fleet requires dedicated warehouse automation and robotics systems, not the standard Copilot features in Dynamics 365 Supply Chain Management.

Answer

Set up financial dimensions for cost centers

Answer

Automatically manage warehouse robot fleet

Question 7

You are a supply chain consultant for a mid-sized manufacturing company that uses Dynamics 365 Supply Chain Management. The company produces electronic components and has two warehouses: one for raw materials (Warehouse A) and one for finished goods (Warehouse B). They have been experiencing frequent delays in production because raw materials are not available when needed, even though the materials are in stock at Warehouse A. The production scheduler reports that the system does not automatically reserve materials for production orders. Additionally, the warehouse manager wants to implement a policy where high-value raw materials are stored in a secure, locked area within Warehouse A, and only authorized workers can pick them. You need to configure the system to: (1) automatically reserve raw materials for production orders when they are firm planned; (2) restrict picking of high-value materials to specific workers. What should you do?

Accepted Answer

Configure production reservation in the production control parameters to reserve materials automatically when production orders are firm planned. Create a new warehouse location for high-value items, and set up a mobile device menu item with a worker filter to restrict picking to authorized workers.. Configuring production reservation in the production control parameters automatically reserves raw materials when production orders are firm planned. Creating a new warehouse location for high-value items and setting up a mobile device menu item with a worker filter restricts picking to authorized workers, meeting both requirements.

Answer

Set up location profiles to mark the secure area as 'Restricted' and configure location directives to use these locations for high-value items. Enable production reservation in the production order defaults.

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Assign batch attributes to high-value materials and use batch reservation. Restrict picking by setting up a separate warehouse for high-value items.

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Use inventory status to block high-value items and create a quality order to release them. Enable automatic reservation in master planning parameters.

Question 8

During a system audit, you discover that a warehouse worker has been able to pick inventory that was reserved for another order. Which configuration change should you recommend to prevent this issue?

Accepted Answer

Configure the inventory reservation hierarchy to enforce reservation against physical supply.. The issue is that a warehouse worker can pick inventory reserved for another order. To prevent this, the inventory reservation hierarchy should be configured to enforce reservation against physical supply. This ensures that reserved inventory is not available for picking by other orders. The reservation hierarchy defines how inventory is reserved (e.g., by site, location, status) and enforcing it against physical supply prevents over-picking.

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Enable wave processing to create picks only for unreserved inventory.

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Set up location directives to restrict picking from reserved locations.

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Change inventory status to 'Quarantine' for reserved items.

Question 9

A company uses Dynamics 365 Supply Chain Management and wants to automate the replenishment of items based on historical demand and predefined minimum stock levels. Which feature should they configure?

Choose an answer to begin — your selection is scored in the full session.

Accepted Answer

Configure a location directive with a 'Nearest' strategy.. Location directives in Dynamics 365 Supply Chain Management with advanced warehouse management can be configured with a 'Nearest' strategy. This strategy directs the system to calculate the shortest distance from the worker's current location to the nearest location containing available inventory, ensuring efficient picking routes for sales orders.

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Set up a work template that assigns the nearest work user.

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Define a mobile device menu item for 'Location Inquiry'.

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Create a wave template that prioritizes proximity.

Question 10

A company uses Dynamics 365 Supply Chain Management and wants to automate the replenishment of items based on historical demand and predefined minimum stock levels. Which feature should they configure?

Choose an answer to begin — your selection is scored in the full session.

Accepted Answer

The master plan is not set to include the firming action.. In Dynamics 365 SCM master planning, the firming time fence defined on the coverage group only takes effect if the master plan itself is configured to run the firming action. The master plan's 'Firming' setting (or the 'Firming time fence' checkbox in the master plan parameters) must be enabled; otherwise the coverage group's firming time fence is ignored and planned orders remain unfirmed. This is a classic configuration dependency between coverage group and master plan.

Answer

The firming time fence is longer than the planning horizon.

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The item has a minimum inventory quantity set to zero.

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The coverage group is not assigned to the item.

Question 11

A company uses Dynamics 365 Supply Chain Management and wants to use AI to predict potential stockouts and suggest replenishment orders. Which feature should they enable?

Accepted Answer

Inventory Visibility Add-in with AI-powered demand forecasting. The Inventory Visibility Add-in with AI capabilities provides demand forecasting and stockout predictions. The Product Insights feature is for product performance. The Asset Management module is for maintenance. The Commerce module is for retail.

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Asset Management

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Product Insights

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Commerce module

Question 12

Contoso Ltd. is a global manufacturer of electronic components. They use Dynamics 365 Supply Chain Management with advanced warehouse management (WMS). The warehouse manager reports that during peak seasons, the picking process is slow because workers often have to travel long distances to pick items for multiple orders. Additionally, they want to improve the accuracy of shipments by ensuring that items are picked in the correct sequence. They have implemented barcode scanning on mobile devices. The IT team has configured location directives and work templates. However, the manager believes that the current setup does not optimize travel time or enforce a specific picking order. The company needs a solution that groups orders with similar items into a single picking trip and prioritizes picks based on the physical layout of the warehouse. They have considered using wave management but are unsure how to configure it. What should the administrator do?

Accepted Answer

Configure cluster picking in the wave template to group orders with similar items and create a single pick list for the cluster.. Cluster picking in Dynamics 365 Supply Chain Management groups multiple orders into a single picking trip for one worker, reducing travel distance by consolidating picks from nearby locations. Configuring it in the wave template enables the system to generate a consolidated pick list for the cluster, directly addressing both the travel-time and pick-sequence requirements. This is the standard WMS feature for batching orders with similar items.

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Define zone sequencing in the work template to enforce a specific order of zones.

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Set up cross-docking to move incoming items directly to outbound docks.

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Enable 'FEFO' (first expiry, first out) picking strategy in the location directive to prioritize older stock.

Question 13

Northwind Traders uses Dynamics 365 Supply Chain Management for their distribution operations. They have a requirement to manage inventory across multiple warehouses and legal entities. They want to transfer finished goods from their manufacturing subsidiary (legal entity A) to their distribution subsidiary (legal entity B) at a transfer price that includes a markup. The transfer should be recorded as a sale in entity A and a purchase in entity B. They plan to use intercompany functionality. The finance team has set up intercompany parameters, but the transactions are not creating the expected intercompany orders. The administrator has verified that both entities are configured correctly in the system. However, the intercompany orders are not generated automatically when a purchase order is created in entity B. What should the administrator check next?

Accepted Answer

Ensure that the intercompany relationship is defined for the specific item in the item mapping setup.. The most likely cause is that the intercompany relationship is not defined for the specific item in the item mapping setup. Intercompany trade requires that items be mapped between the selling and buying legal entities, including the intercompany vendor and customer. Without this mapping, the system cannot automatically generate intercompany orders, even if other parameters are correct.

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Confirm that the inventory unit of measure is the same in both entities.

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Check that the intercompany parameters in entity B are set to 'Create intercompany purchase orders automatically'.

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Verify that the vendor associated with entity A is set up as an intercompany vendor in entity B.

Question 14

A small manufacturing company recently implemented Dynamics 365 Supply Chain Management to manage their production. They produce custom furniture and want to use production orders to track costs and materials. The production manager creates a production order for a new chair design. However, when they try to estimate the production order, they receive an error: 'No active bill of materials (BOM) version exists for the item.' The item (chair) has a BOM, but the BOM version is set to 'Draft' status. The manager needs to proceed with the production order as soon as possible. What should the administrator do to resolve this issue?

Accepted Answer

Change the BOM version status from 'Draft' to 'Approved' and then 'Active'.. In Dynamics 365 Supply Chain Management, a BOM version must be in 'Active' status before it can be used for production order estimation or scheduling. A 'Draft' version is not considered valid for master planning or production execution. The correct resolution is to promote the BOM version through the lifecycle: first to 'Approved', then to 'Active'. This makes the BOM version available for production order processing without recreating or deleting any data.

Answer

Copy the BOM from a similar item and assign it to the chair.

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Delete the existing BOM version and create a new one with 'Active' status directly.

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Set the production order to not require a BOM by clearing the BOM field.

Question 15

A company uses Dynamics 365 Supply Chain Management and wants to automate the replenishment of items based on historical demand and predefined minimum stock levels. Which feature should they configure?

Choose an answer to begin — your selection is scored in the full session.

Accepted Answer

Set the 'License plate required' option on the location directive for the bulk location. A location directive with a 'License plate required' setting forces workers to scan the license plate during picking. Option A is a general setup, not specific to scanning. Option B controls item registration, not scanning enforcement. Option D controls menu navigation, not scanning.

Answer

Create a mobile device menu item with 'Scan by' set to License plate

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Assign a menu item to a role that only allows license plate scanning

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Configure a work creation policy that requires license plate registration